WINGSX Fund – Semi-Annual Shareholder Letter (Texas, August 2025)

Advisor: Nick , Wings Folio

WINGSX Fund – Semi-Annual Shareholder Letter (Texas, August 2025)

The WINGSX Fund, based in Texas under the management of WingsFolio, continues to deliver strong results with an emphasis on capital preservation and disciplined investing. The strategy follows the principle: “Don’t lose money”—focusing first on avoiding losses, then compounding steady returns.

Performance Highlights (as of June 30, 2025):

• 2024: WINGSX gained 27.0%, compared to the Dow at +15.0% and peer equity-hedged funds averaging +14.5% — an outperformance of more than 12%.

• First Half 2025: WINGSX delivered 20.1%, far ahead of the Dow’s +8.1% and peers at +7.5%.

• Risk Profile: Beta of 0.60 vs. Dow’s 0.83, meaning ~27% lower volatility.

• Risk-Adjusted Returns: Treynor Ratio and Sharpe metrics show WINGSX significantly ahead of the Dow and all comparable funds across every measured period.

Assets Under Management:

Scaled to current positioning, the fund manages approximately $2 million in assets.

Portfolio Drivers:

• Netflix / Chipotle / Nvidia remains the largest position (~19.5% of portfolio), producing a 294% return over three years. Entry point was $340/share; it now trades at $1,339.

• Sprouts Farmers Market (SFM): A standout, with gains of 530% since 2020.

• Occidental Petroleum (OXY): A temporary drag (-32% since 2020), but remains a long-term value play with strong management fundamentals.

Category Rankings (Equity Hedged Funds – Morningstar):

• #1 of 124 funds (Last 12 months)

• #1 of 112 funds (Trailing 3 years)

• #1 of 91 funds (Trailing 5 years)

WINGSX is consistently performs as the top-performing equity-hedged fund in its class, thanks to its ability to deliver results while protecting downside.

Strategy & Philosophy:

• Concentrated portfolio of 10–15 exceptional businesses purchased at significant discounts.

• Maintains substantial cash and U.S. Treasuries (earning 6–9%) for flexibility during downturns.

• Uses hedges and options to further manage downside exposure.

• Avoids overpaying for “hyped” mega-cap stocks like the Magnificent 7, preferring value and margin of safety.

• Employs AI-driven analysis and automation to reduce drawdowns and dynamically adapt to real-time market conditions.

Economic Outlook:

The fund remains vigilant regarding risks from U.S. debt, trade imbalances, tariffs, and fluctuating oil prices. While AI is a transformative force, valuations are carefully assessed to avoid speculative excess.

By holding cash reserves and hedges, WINGSX is positioned to capitalize on volatility and market dislocations, turning uncertainty into opportunity.

Bottom Line:

The WINGSX Fund has consistently outperformed the Dow Jones and peer funds by over 12%, while maintaining a lower risk profile. Its strategy—rooted in patience, discipline, and selective ownership—aims to grow investor wealth steadily while protecting capital during downturns. With AI-powered insights and an unwavering commitment to risk management, WINGSX continues to be a leading choice for investors seeking smarter, safer growth.